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A company's earnings before interest, taxes, depreciation, and amortization (commonly abbreviated EBITDA, [1] pronounced / ˈ iː b ɪ t d ɑː,-b ə-, ˈ ɛ-/ [2]) is a measure of a company's profitability of the operating business only, thus before any effects of indebtedness, state-mandated payments, and costs required to maintain its asset base.
A professional investor contemplating a change to the capital structure of a firm (e.g., through a leveraged buyout) first evaluates a firm's fundamental earnings potential (reflected by earnings before interest, taxes, depreciation and amortization and EBIT), and then determines the optimal use of debt versus equity (equity value).
Enterprise value/EBITDA (more commonly referred to by the acronym EV/EBITDA) is a popular valuation multiple used to determine the fair market value of a company. By contrast to the more widely available P/E ratio (price-earnings ratio) it includes debt as part of the value of the company in the numerator and excludes costs such as the need to replace depreciating plant, interest on debt, and ...
Turning to adjusted EBITDA and free cash flow, Uber adds back two significant items that are real costs for the company. One is stock-based compensation, which totaled $1.8 billion last year, and ...
Data source: Upstart. YOY = Year-over-year. That acceleration indicates Upstart has already passed its cyclical trough. Its adjusted earnings before interest, taxes, depreciation, and amortization ...
This business beat EBITDA guidance by 117% at its highest-ever margin of above 9%. Absolutely incredible quarter. Share sank by double digits, all because management came out and said, you know what?
Compared to the fourth quarter last year, adjusted EBITDA for the fourth quarter of 2024 increased $120 million to 209 million, while modified EBITDA margin improved 650 basis points to 30.4%.
The times interest earned ratio indicates the extent of which earnings are available to meet interest payments. A lower times interest earned ratio means less earnings are available to meet interest payments and that the business is more vulnerable to increases in interest rates and being unable to meet their existing outstanding loan obligations.